Can you borrow from your life insurance?

Answer 1

You can borrow from a whole life insuranc epolicy if there is cash value that has built up within the policy.

The rules regarding borrowing from your policy should be stated in the life insuranc epolicy under the section regarding loans or cash withdrawals from the policy.

Usually, you will have to pay a low interest rate on the money borrowed. The interest and loan repayment go back into the policy when repaid.

Term insurance policies do not build cash value within the policy, so no loan can be taken from a term insurance policy.

The loan provisions for a whole life insurance policy depends on the terms and conditions of your policy, and the amount of money available within the policy to take as a loan.

I hope that helps. Good luck to you.

Answer 2

Yes, unless it is a Term Policy. Contact your broker to determine the amount you can borrow, the interest rate, and the repayment schedule, as well as the consequences of failing to pay it off.

Answer 3

If there's cash value in the policy, you can borrow it anytime.
If you are sick or terminally ill or become disabled, you can use (not borrow) a percentage (usually up to 40%) of your face amount (though, you might want to read the policy in regards to this issue).